Do you want to save your money but are unsure which investment tool to use? Well, the option to invest in fixed deposits is always available to investors looking for a safe option. One of the most popular FD investment tenures among depositors is 5 years, which usually comes with a tax-saving feature. It helps you get high returns on your investment and is tax-saving.
Let us dive deeper to know the best FD rates for 5 years offered by different banks.
About FD
FDs or fixed deposits are a secure investment choice in which you deposit a particular amount of money with the bank or Non-Banking Financial Company (NBFC), for a set duration of time and at an attractive interest rate. This is a safe investment option for cautious investors seeking a steady income stream.
The rate of interest applicable on your FDs is higher than what you get in savings accounts. This is mostly because your money remains fixed for a specific tenure, and you do not have the flexibility to withdraw or deposit money whenever you want.
Financial institutions offer you FDs with flexible tenure of 7 days to 10 years. Individuals wanting to invest money for 5 years mostly opt for tax-saving FD schemes. You can get the best 5-year fixed deposit rates from both small and large finance banks, helping you grow your money significantly.
Some key benefits of investing in FDs are:
- You can take a loan against your fixed deposits.
- Additional interest rate benefits for senior citizens.
- Guaranteed returns on your deposit.
- Simple investment process.
- Grow money for a fixed period to use in different financial requirements.
- Competitive and attractive interest rates are available.
Best FD Interest Rates for 5-Year Tenure – 2023
In this section, we will guide you through the best FD for 5 years with their interest rates for both general and senior citizens.
1. Bank FD Interest Rate for 5-Year
Here is a list of well-known banks in India offering the best FD interest rates for 5 years.
| Bank | General Citizen | Senior Citizen |
|---|---|---|
| State Bank of India | 6.50% p.a. | 7.50% p.a. |
| HDFC Bank | 7.00% p.a. | 7.75% p.a. |
| Axis Bank | 7.00% p.a. | 7.75% p.a. |
| ICICI Bank | 7.00% p.a. | 7.50% p.a. |
| Punjab National Bank | 6.50% p.a. | 7.00% p.a. |
| Bank of Baroda | 6.50% p.a. | 7.15% p.a. |
| Canara Bank | 6.70% p.a. | 7.20% p.a. |
| Central Bank of India | 6.25% p.a. | 6.75% p.a. |
| Indusind Bank | 7.25% p.a. | 8.00% p.a. |
| Union Bank of India | 6.50% p.a. | 7.00% p.a. |
| Bandhan Bank | 5.85% p.a. | 6.60% p.a. |
| Kotak Mahindra Bank Ltd. | 6.20% p.a. | 6.70% p.a. |
| DCB Bank | 7.40% p.a. | 7.90% p.a. |
| IDFC First Bank | 7.00% p.a. | 7.50% p.a. |
| IDBI Bank | 6.255 p.a. | 6.75% p.a. |
2. Small Finance Bank FD Interest Rate
Here is a list of small finance banks offering the best FD rates for 5 years for both general citizens and senior citizens.
| Bank | General Citizen | Senior Citizen |
|---|---|---|
| Ujjivan Small Finance Bank | 7.20% p.a. | 7.70% p.a. |
| Unity Small Finance Bank | 7.65% p.a. | 8.15% p.a. |
| Utkarsh Small Finance Bank | 7.50% p.a. | 8.10% p.a. |
| Suryoday Small Finance Bank | 8.25% p.a. | 8.75% p.a. |
| Shriram Finance Transport Bank | 8.50% p.a. | 9.00% p.a. |
| North East Small Finance Bank | 6.25% p.a. | 7.00% p.a. |
| Jana Small Finance Bank | 7.25% p.a. | 7.75% p.a. |
| AU Small Finance Bank | 7.25% p.a. | 7.75% p.a. |
| Capital Small Finance Bank Limited | 7.10% p.a. | 7.60% p.a. |
| ESAF Small Finance Bank | 6.25% p.a. | 6.75% p.a. |
Conclusion
Overall, FD investment is a secure option for people seeking to get assured returns on their money. Depositing money for 5 years can help you save money for a long tenure as well as save taxes. Always remember to compare the best FD rates for 5 years offered by different large and small banks to plan your finances and returns in a better way.